DartPoints data center coming to Lexington, won’t get city incentives

DartPoints Operating Company, a Dallas-based data center developer, has acquired a former Lexmark property on New Circle Road in Lexington, Kentucky, for $29 million. The private sale, which closed in May, includes over 300,000 square feet, 29.5 acres, and 81,000 square feet of existing raised floor data center space. DartPoints, which operates 11 data centers nationwide, plans an initial phase of 20-30 megawatts with potential expansion up to 70 megawatts at the site.

Lexington Mayor Linda Gorton's office was not informed of the purchase until after the sale and has stated that the city will not support public incentives for the project. Mayor Gorton expressed concerns about data centers' limited job creation and potential to increase utility costs for residents. While the project is permitted under current zoning, Gorton announced her intention to closely examine and tighten regulations for such developments.

Separately, Kentucky Governor Andy Beshear recently declared that all data center projects in the state must cover 100% of their energy costs and adhere to state environmental regulations, ensuring no environmental harm. Data centers are known for high electricity consumption, with a 100-megawatt facility roughly equivalent to the continuous average use of 80,000 homes. DartPoints stated it is implementing measures to reduce its environmental footprint, including using smarter technology, renewable power, and improving equipment efficiency, with planning and redevelopment work already underway.